The Pecking Order Hypothesis suggests that less profitable companies will need more external funding and will first seek debt financing in an asymmetric world, avoiding the equity market

If Manufacturing Overhead has a credit balance at the end of the period, then

a. overhead has been underapplied. b. the overhead assigned to Work in Process Inventory is less than the overhead incurred. c. overhead has been overapplied. d. management must take corrective action.

John buys a watch for $100 at a vintage store. Later, the store learns that the watch was worn by Sean Connery in a James Bond movie and wishes to rescind the sales contract they have with John

Which of the following statements is true in this scenario? A) The store can rescind the contract immediately and refund $100 to John. B) The store can recover from John the difference between the value of the watch and the amount paid by John. C) The store can declare the contract void and pay John no money. D) The store cannot rescind or void the contract.